The information below is an archive of questions and answers related to Public Act (PA) 184 of 2022, which changed the rules regarding working after retirement and how to report retirees who return to work, effective July 25, 2022. It serves as a record of information ORS provided to reporting units regarding implementation of that legislation.
PA 147 of 2023 went into effect on Oct. 10, 2023. The new law changes several rules that were established with PA 184 of 2022. The information below shows what was in effect as of July 25, 2022, and indicates whether the rule is still in effect or was changed by the newer law.
(archived on Oct. 12, 2023)
Continue to submit a DTL4 record for directly hired retired employees. Retired employees hired indirectly do not require a DTL4 record.
No. Critical shortage hours are no longer being monitored for retired employees.
Yes. Hours are no longer tracked for critical shortage purposes; however, you are still required to report retiree hours or your records will suspend.
Yes. There are no longer special reporting instructions for retirees returning to work under critical shortage or as an instructional coach, school improvement facilitator, school renewal coach or high impact leadership facilitator, substitute teacher, or National Service member.
Yes. You are required to submit records for all retirees working directly or indirectly, either through a third party or as an independent contractor. Their effective date of retirement is no longer a factor in determining if they will be reported to ORS. By answering a few questions, the Working after retirement — employer guide will give you complete reporting instructions for each of your retirees who return to work.
A retiree may work at one of the seven universities that participates in the Michigan Public School Employees’ Retirement System immediately after retirement with no earnings limit and no effect on their pension and insurance premium subsidy if they have no previous university employment used in the calculation of their pension. They are not required to have a bona fide termination. If they earned service with one of the seven universities before 1996, they must have a bona fide termination before returning to university employment.
Yes. Records prior to July 25, 2022, with other retiree class codes, in addition to 9005 and 9025, can still be adjusted. You can find instructions on how to adjust a DTL2 record in section 7.05.08 Adjusting wages or hours on a DTL2 record of the Reporting Instruction Manual (RIM).
Yes. The old versions of the Working after retirement — employer guide are available in Appendix B: Previous Versions of Revised Reporting Information of the RIM.
These guides should only be used when instructed by ORS for the purpose of making adjustments as a result of an audit finding.
No. PA 184 of 2022 no longer requires employers to pay the UAAL employer contribution rate for retired employees.
No. Report your directly hired retirees under the 9005 class code, and indirectly hired retirees under the 9025 class code.
No. PA 184 of 2022 does not have a sunset date.
A retired employee can return to work at a Michigan public school reporting unit without forfeiting their pension or complying with a limit on earnings if they meet two criteria:
As the employer, refer them to the Working After You Retire webpage on the ORS Public School Employees’ Retirement System website where they can research the new law and its impact on their pension and insurance premium subsidy.
Ultimately, it’s the retired employee’s responsibility to ensure that they’ve met the bona fide termination requirements. In addition, it isn’t possible for you, the reporting unit, to know with 100% certainty that they’ve met the complete requirements.
Therefore, as the employer, you can refer them to the Working After You Retire webpage on the ORS Public School Employees’ Retirement System website as their first point of contact to determine if they’ve met the bona fide termination requirements.
As the reporting unit, you can see the retired employee’s effective date of retirement on the Member Benefit link of the Employer Reporting website. You can use this date to determine whether they have been retired at least one month, but this is only one part of the requirements for a bona fide termination.
If the retired employee returns to work, either directly or indirectly, and they don’t have a bona fide termination and/or they have not been retired nine consecutive months they will temporarily forfeit their pension and insurance premium subsidy. This rule has been changed by PA 147 of 2023 until Oct. 10, 2028. See Reporting Retirees and the FAQs for PA 147 of 2023 for updated information.
As the employer, refer them to the Working After You Retire webpage on the ORS Public School Employees’ Retirement System website where they can research the new law and its impact on their pension and insurance premium subsidy.
There is no effect to the retired employees’ pensions. PA 184 of 2022 removed special provisions for retirees returning to work under the critical shortage conditions.
As the employer, refer them to the Working After You Retire page on the ORS Public School Employees’ Retirement System website where they can research the new law and its impact on their pension.
Yes. Current retired employees will be grandfathered into the PA 184 of 2022 rules. As the employer, refer them to the Working After You Retire page on the ORS Public School Employees’ Retirement System website where they can research the new law and its impact on their pension.
(Archived on Jan. 23, 2023)
Yes. Begin reporting on the first full pay period with a begin date on or after July 25, 2022, when the law went into effect.
If the law goes into effect in the middle of your pay cycle, begin reporting on the first full pay period with a begin date on or after July 25, 2022, when the law went into effect.
Your records may suspend once ORS implements the changes. Manual edits to records may be necessary. It is advantageous for your reporting unit to implement the system changes as soon as possible to prevent future adjustments.
Once ORS implements the system changes, you will no longer be charged the UAAL and ORS will work to refund the contributions charged in error.
Changes to working after retirement rules for MPSERS (sent July 26, 2022)
Update on PA-184 related technology (sent Oct. 14, 2022)
